E-mini 8 bull bars streak is unusual and therefore unsustainable and climactic.
Since yesterday closed in lower third, today or tomorrow will probably be a bear bar.
Also, today will probably trade below yesterday’s low.
Open of the day will be a magnet late in the day if the E-mini is within 10 points of it.
8 consecutive bull bars means aggressive bulls. They will buy below yesterday’s low and the first 1- to 3-day pullback.
Extreme buy climax, but no sign of major top. Similar to the parabolic rallies in June and October. Both were followed by 10% pullbacks. Traders will continue to buy until there is a strong reversal down.
Overnight E-mini Globex trading on 5-minute chart
Yesterday’s high was a ledge top (5 bars in a tight trading range with identical highs).
Ledge top is a magnet. E-mini should break above it within a few days.
Down 8 points in Globex market so will likely get gap down.
Small gaps usually close in first hour.
Bears want big bear day, which would increase chance that yesterday was start of 2-week selloff.
Today will probably close below the open, but bulls will likely buy first 1- to 3-day pullback.
After 2 big bull days, today will probably not be a big bull trend day.
While it is possible that today will be a big bear day, and reverse Monday’s rally, a trading range day with a close below the open is more likely.
Should have at least one swing up, and one swing down today.
If there is a series of strong trend bars in either direction in the first hour, then could get trend day.
Yesterday’s E-mini setups
Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.
If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.